Distancing From Controversy: Bitwise Asset Management’s Stance
Bitwise Asset Management, a renowned crypto index fund, has recently clarified that it has no affiliations with Bitwise Industries. The SEC has charged the founders of Bitwise Industries, Irma Olguin Jr. and Jake Soberal, with committing wire fraud and misleading investors to obtain $100 million in funding.
These allegations involve falsifying documents to deceive investors, a serious charge in the financial world. The similarity in names between the two entities has led to confusion, where Bitwise Asset Management’s logo was mistakenly used in discussions about the charges against Bitwise Industries.
In response to the growing confusion, the asset manager took swift action. The San Francisco-based company released a statement to clear the air earlier today.
The statement highlighted that Bitwise Asset Management, known as America’s largest crypto index fund, has never connected with the Fresno-based Bitwise Industries, now described as a “defunct” technology company. The Asset Management firm noted:
San Francisco-based Bitwise Asset Management, Inc., the largest crypto index fund manager in America, has no relationship with, and has never had a relationship with, the now-defunct Bitwise Industries, a former technology company based in Fresno, California.
Challenging The SEC: Bitwise’s Advocacy for Spot Bitcoin ETF Approval
Bitwise Asset Management itself has also had issues with the SEC in the past. However, as part of the applicants for the spot Bitcoin ETF approval process, they have recently challenged the SEC’s stance through academic insights.
Having recommenced the 19b-4 form filing process and renewing its application for the spot Bitcoin ETF, the asset manager came armed with academic insights questioning the rationale behind the SEC’s reluctance to approve their ETF.
The SEC’s hesitation in approving spot BTC ETFs has frequently been attributed to concerns about market manipulation. In response, Bitwise’s amendment through NYSE Arca offers a counterargument reviewing all eleven of the SEC’s disapproval orders to clarify the academic perspective.
The asset manager analysis consistently indicates that the Chicago Mercantile Exchange (CME) futures market leads in price discovery over the spot market. This conclusion is backed by extensive engagement with SEC staff over nearly two years and supported by a detailed 107-page white paper.
Hot Take: The Future of Crypto Investments
The recent developments involving Bitwise Asset Management and its ongoing efforts for spot Bitcoin ETF approval highlight a changing landscape for crypto investments. With increased scrutiny from regulatory bodies like the SEC and growing interest from institutional investors, these efforts could shape how cryptocurrencies are viewed as investment vehicles in traditional financial markets.
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